The US economy finished the year with a reported annual growth rate of 2.8%, but the fourth quarter saw a slower-than-expected increase of just 2.3%. This marks a drop from earlier expectations of 2.6% for Q4. Despite the cooler growth in the last quarter, analysts believe the economy remains on solid ground, supported by robust consumer spending. However, the decline in inventories and rising inflation raise concerns about future economic performance. As the Federal Reserve considers its next steps, the current economic indicators suggest a cautious outlook.